Scotland's Tax Strategy 2024: child rights and wellbeing impact assessment

Child Rights and Wellbeing Impact Assessment Template

1. Brief Summary

Type of proposal:

Applicable answer: Decision of a strategic nature relating to the rights and wellbeing of children

Name the proposal, and describe its overall aims and intended purpose.

In 2023, the Scottish Government published its Medium-Term Financial Strategy (MTFS)^[1], which outlined our three-pillar approach to ensuring that the public finances are on a sustainable trajectory. Scotland’s Tax Strategy 2024 (“the Tax Strategy”) delivers on the pillar “to maintain and develop our strategic approach to tax”, sitting alongside pillars that focus spending decisions on Government priorities and prioritise economic activities to broaden the tax base.

The actions set out in the Tax Strategy build on the principles set out in the Framework for Tax^[2]. They will support the progression to a tax system which aligns policy aims with outcomes, is informed by robust evidence and engagement with others, and enables us to take a system wide and comprehensive approach to tax policy in Scotland.

These will be prioritised around five areas:

• Priorities for the Existing System.
• The Economy and the Tax System.
• Administration of the Existing Tax System.
• Evidence and Evaluation.
• Future Priorities.

Start date of proposal’s development: 25 May 2023

Start date of CRWIA process: 24 September 2024

2. With reference given to the requirements of the UNCRC (Incorporation) (Scotland) Act 2024, which aspects of the proposal are relevant to/impact upon children’s rights?

Elements of the Tax Strategy that relate to stakeholder engagement, 16- and 17-year-olds fall within the definition of “children” for the purposes of the UNCRC requirements which are incorporated into Scots law by the UNCRC (Incorporation) (Scotland) Act 2024 and therefore 16- and 17-year-old enjoy the rights set out in the UNCRC requirements. There will be a proportion of 16- and 17-year-olds paying Income Tax. Therefore, the implementation of the Tax Strategy, and inclusion of young people in our tax policy engagement cycle, will have the potential to have a positive impact on Article 12.1 (the right to be heard), by improving the regularity and opportunities for 16- and 17-year-olds to engage with the Scottish Government on tax policymaking in relation to taxes which affect them.

3. Please provide a summary of the evidence gathered which will be used to inform your decision-making and the content of the proposal

With regards to potential impacts in relation to Article 12.1, Scottish Government engaged with a broad variety of stakeholders during the development of the tax strategy, including tax professionals, think tanks and civic society groups. Whilst none of these groups included groups solely representing young people, evidence gathered throughout the development of the Tax Strategy suggested that the Scottish Government should engage more widely on tax with seldom heard voices which could include young people.

4. Further to the evidence described at ‘3’ have you identified any 'gaps' in evidence which may prevent determination of impact? If yes, please provide an explanation of how they will be addressed

With regards to potential impacts to Article 12.1, Scottish Government did not directly consult with any groups specifically representing or including children and young people who may be subject to taxation. These groups will be included in engagement following the publication of the Tax Strategy.

5. Analysis of Evidence

During stakeholder engagement for the development of the Tax Strategy, stakeholders highlighted the importance of having a broad range of views on tax policy, identifying that seldom heard groups should be considered as part of engagement plans.

6. What changes (if any) have been made to the proposal as a result of this assessment?

Following stakeholder engagement, Scottish Government decided to build and enhance engagements following the Tax Strategy publication. As such, seldom heard voices, including children and young people will be included in engagement on the implementation of the Tax Strategy, and future tax policy engagement cycles where appropriate.